PROJECT REPORT

ON

INDUSTRIAL MARKETING AND CUSTOMER PERSPECTIVE

FOR

SUBMISSION IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF FULL TIME BBA PROGRAMME 2008-11

Subm !!"# b$% N'm"% RUPINDER MANGAT R&,, N&(% 1-1.

Subm !!"# !&% PROF( M')&* '+&+' P+&*"/! Gu #"

GOBINDGARH PUBLIC COLLEGE ALOUR KHANNA

ACKNOWLEDGEMENT

I would like to thank MR. RISHIKESH I am grateful to MR. M !"# R"R

for giving me such a

wonderful opportunity to widen the horizon of my knowledge. for providing me with an e$cellent guidance %constant supervision and encouragement without whose guidance this report could not have &een completed. 'inally I take the opportunity to e$press my sincere thank to each and every person who have &een involved into this pro(ect.

R)*I!+ER M !, -

CONTENTS
.H *-ER/0 0.0 0.0.0 0.0.1 0.0.3 0.0.4 0.0.5 Introduction -he +efinition of Industrial Marketing -he Industrial Marketing concept 0.0.2 *articipants of Industrial Marketing .hannels of Industrial Marketing the Relationships -he Industrial .ustomer

.H *-ER II 1.0 1.1 1.2 1.3 1.4 1.5 1.6 "&(ective !ature and Scope of Study Research methodology Sampling Method Sample Size Sample .haracteristic Research Instrument

.H *-ER/III 2.0 nalysis 7 Interpretation

.H *-ER/I8 3.0 3.1 3.2 3.3 'indings 9imitation .onclusion Suggestion :i&liography ppendi$

LIST OF TABLES

- :9E/I - :9E/II - :9E/III - :9E/I8

,eneral Information .ustomer Relationship :arometer *ricing Strategy +etermining Marketing Strategy

EXECUTIVE SUMMARY

-his pro(ect report on Industrial Marketing was undertaken to o&serve how companies market their product% how they deal with the pricing strategy and how they tone up with their marketing muscel. -his pro(ect report gives the needed &eneficial practical knowledge and helped the management professional in undertaking the nature of markets% people and organization. Research was done only on the eight companies. In this we found that industrial marketers face many uni;ue marketing situation not normally encountered in the consumer market. -his pro(ect is made on the &asis of the research conducted through personal interview method. -his pro(ect is &ased on the ;ualitative data and it help to discover new relationship. So this pro(ect is &ased on the e$ploratory research. In this pro(ect primary data is ;ualitative in nature. long with this data a lot of secondary data is also used. In the &eginning of the pro(ect report the introduction is given a&out the pro(ect. -hen comes the research methodology% which was &eing adopted for conducting the survey% !e$t we have considered the key stages in the pro(ect like data collection and data analysis.

CHAPTER-I

1.1 INTRODUCTION

INTRODUCTION
THE DEFINITION OF INDUSTRIAL MARKETING Industrial marketing consists of all activities involved in the marketing of products 7 services to organizations% <i.e. commercial enterprises% profit 7 not for profit government agencies 7 resellers= that use products and services in the production of consumer or industrial goods 7 services 7 to facilitate the operation of their >enterprises?. 8iewed from the perspective of >marketing?% industrial marketing is% then% human activity directed towards satisfying wants 7 needs of organizations through the e$change process. E$change transaction in the indusial mark set consists of @/ 0. 1. 2. 3. *roduct or Service e$change suppliers Information e$change suppliers 'inancial e$change suppliers Social e$change suppliers.

THE INDUSTRIAL MARKETING CONCEPT -he marketing concept holds% that the key task of the organization is to define the needs of a target market and adapt the organizationAs product or service to satisfy those needs more effectively than its competitors. Bhile the nature of the market differs% the marketing concept is applica&le 7 important in &oth industrial 7 consumer markets.

PARTICIPANTS OF INDUSTIRAL MARKETING "ne way to identify participants in the system of industrial marketing is to think of the national economy as composed of three &road divisions e$tractive industries% manufacturing industries using or consuming units. "n the supply side of the industrial marketing the ma(or participants are manufacturing and mining esta&lishments 7 on the demand side is a family of &usiness 7 industrial users% government agencies 7 departments and e$porters. :ecause of their importance as industrial customers% its often meaningful to distinguish original e;uipment manufacturers <"EMAs= from other manufacturers. -he original e;uipment manufacturer is one who &uys a material or component to incorporate into a product he makes 7 sells. 'or e.g. a diesel engine maker who &uys filters 7 gear &o$es for use on his engines is classified as an "EM customer &y suppliers of filters and gears &o$es. *roducers 7 users of industrial products are linked &y a third group of participants% industrial middlemen. -hese may &e identified as manufacturers &ranches% merchant whole sellers or distri&utors 7 agents. Several types of agents participate in the marketing of Industrial products the most important of these in terms of &oth num&er of esta&lishments and volume of sales are the manufacturerAs agents. -hese firms represent only sellers whom they serve on a commission &asis. Sales agents operate in much the same manner as manufacturerAs agents. -hey represent a limited num&er of sellers on a more or less continuous &asis 7 charge a commission for their% services. )nlike manufacturerAs agents however sales agents usually sell to a given trade or industry group wherever its mem&ers can &e found and do not limit their activity to any specific area.

:rokers usually do not play very significant part in Industrial goods marketing% &ut they can provide some very useful services% while &rokers negotiate 7 facilitate sales they do not take title to the merchandise involved 7 ordinarily &ear no responsi&ility for it or its conditions. lthough advertising agencies% consulting firms% transportation companies and financial institution participate in the industrial marketing system on the demand side% they also make a uni;ue contri&ution to the movement of goods &etween &uyers and sellers and to the transaction which produce this movement.

CHANNELS OF INDUSTRIAL MARKETING -he participants in the industrial marketing system are linked &y &oth direct and indirect channels. -he direct channel is traditionally defined as one in which the producers control the distri&ution of his products from factory to user or "EM customer. -he indirect channel is identified &y the presence of independent middlemen who limit the control a manufacturer can e$ercise over the marketing of his products. Some of the more common channel arrangements through which industrial goods reach user 7 "EM customers. 0. Manufa !u"#" !$ %"an & &$u'# $" %"an & $ff( # !$ u'!$)#"*-his is the direct cannel and is usually implemented through the manufacturerAs own sales force. 1. Manufa !u"#" !$ +('!"(%u!$" !$ u'!$)#"* )sually manufacturers sell to whole salers through a small sales force 7 ship goods to them in ;uantity lots which are then sold in &roken lots of individual items &y the distri&utorAs salesmen. 2. Manufa !u"#" !$ a,#n! !$ u'!$)#" *-he agent customarily makes initial contact with customers and performs a complete sales function% often supplying technical service where needed. "rders are usually referred to manufacturers who ship direct to customer. 3. Manufa !u"#" !$ a,#n! !$ a +('!"(%u!$" !$ u'!$)#"' *-his arrangement is sometimes used in markets composed of small and scattered customers not worth the manufacturerAs individual attention &ut whose com&ination volume for a num&er of products is large enough to support marketing efforts.

4.

M(-#+ a""an,#)#n! *Each of the preceding channel arrangements of course% represents a general type of class% 7 manufacturers create many variations within each of them as well as hy&rid arrangements including two or mare channel types. manufacturer may use one channel for one product or group of products and another for a different product group% or reach one group of customers through one channel and use a completely different channel for another customer group.

THE RELATIONSHIPS -he relations that e$ist among the participants who compose the various distri&ution channels for industrial products may &e most easily identified as formal and informal. mong the formal relationships are the various contracts of sale and franchise agreements which define the respective responsi&ilities and rights of &uyers and sellers. -he most significant of the informal relationships are loyalty% confidence and reciprocity. THE INDUSTRIAL CUSTOMER BUYER MOTIVES )nlike the ultimate consumer% the Industrial &uyer is motivated &y &udgetary considerations such as profit goals% e$pense ;uotas and cost &enefit guidelines. The core variables-he considerations which influence the professional &uyers decision to patronize one supplier rather than another tend to &e ;uality% service and price. -he other factors which influence the customer for &uying an Industrial product are savings and assurance of supply. Quality :-he professional &uyers tends to define product ;uality as the com&ination of properties which fits the products to its intended use. He is reluctant to pay for e$tra ;uality 7 he doesnAt want so &uy products of inferior ;uality. ny property of a product which enhances the life e$pectancy of another products with which its used or otherwise increases the value of that product to its ultimate &uyer is significant ;uality factor.

Service: :usiness% ,overnments and institutions need a variety of services in addition to products and materials. -he most common types of service re;uested are technical replacement part% delivery% information and sales.

Price: *rofessional &uyers seldom rely solely on a vendorAs ;uoted prices. -hey are much more concerned with what is often referred to as the evaluated price. -his takes into consideration a variety of factors such as the amount of scrap resulting from the use of a material% loss or damage lia&ility% the amount of work a machine will do etc. Savings: side from the &est com&ination of ;uality% service 7 price the industrial customer is also motivated to realize savings in the use of materials and e;uipments or in the methods &y which they are procured. -his motivation is especially pronounced in periods of accelerating cost. Assurance of Supply: ssurance of supply is vital to the poor chasing officer. If the supply flow of an item is interrupted% pro&a&le resulting shortages may cause shut downs of production operations. Bhen a shortage threatens% the &uyer may &e a&le to avoid a shutdown &y purchasing emergency orders from suppliers with whom he does not ordinarily deal% &ut such orders are apt to &e e$pensive. In spite of all that any supplier can do his flow of goods to customers may &e interrupted &y strikes% accidents% fire or natural catastrophes% such as flood or storm. -hus no &uyer can &e reasona&ly sure of continuity of supply so long as he purchases entirely from one supplier.

CHAPTER-II

..1 OB/ECTIVE

..1

OB/ECTIVE -o e$plore the marketing concept of Industrial companies in India and the

marketing strategies employed &y Industrial companies in India. a= &= -o find out that to what e$tent the Industrial firms are truly consumer oriented. -o further analyze whether these firms are pricing strategist. -o e$plore other rational criteria employed &y Industrial firms to improve their marketa&ility.

....

NATURE AND SCOPE OF STUDY Bhile the rules of consumer marketing are e;ually applica&le to industrial

marketing% the composition of the industrial market in uni;uely different% as are the forces that affect industrial demand. Industrial marketing managers must react differently to changing market% develop products to meet those changes and market them in uni;uely specialized ways to sophisticated customers while maintaining corporate customers while maintaining corporate o&(ectives and pro(ect. -hus industrial marketers face may uni;ue marketing situations not normally encountered in the consumer market. -his pro(ect on industrial marketing was undertaken to o&serve how the manufacturers of different industrial companies market their products% how they deal with the pricing strategies and now they tone up their marketing muscel. :ut since the research was done on only eight companies there are limitations also. Bhatever marketing strategy these eight companies follow may not &e followed in other industrial companies. If this research is conducted in ten or fifteen industrial companies then it will &e &etter. lthough eight companies are not sufficient for this research we can still get some idea that how marketing is done in industrial companies. Bhat is their approach to customers% how this set the pricing strategies etc.% &ased on the analysis of the survey &eing done in these companies.

..0

RESEARCH METHODOLOGY

-here are &asically three kinds of research@ = := Exploratory Its &ased on ;ualitative data 7 it helps to discover new relationship. Conclusive It is designed to help e$ecutives choose among various possi&le courses of action that is to make decisions. .= Casual It helps to find out the cause and effect relationship. -his pro(ect is &ased on e$ploratory research since conclusive or casual research was not suita&le for this pro(ect since its &ased on ;ualitative data so e$ploratory research method was most suita&le for this pro(ect.

SAMPLING METHOD -here are two types of sampling methods@ = := *ro&a&ility Sampling !on *ro&a&ility Sampling *ro&a&ility sampling method is used in case of conclusive research method where the *rimary data collected is ;uantitative in nature. :ut since in this pro(ect primary data is ;ualitative in nature so non/pro&a&ility sampling method is followed. data a lot of secondary data is also used from various &ooks. long with this

..1

SAMPLE SI2E -he sample size which was chosen for this pro(ect is eight. Eight ;uestionnaires

were given to the sales manager of eight industrial companies.

..3 = := .=

SAMPLE CHARACTERISTIC In the non/pro&a&ility sampling method% a great variety of techni;ues are use like@ #udgment Sampling Cuota Sampling .onvenience Sampling #udgment sampling method was used for this pro(ect since the method of selection

of universe items are &y means of e$pert (udgment.

..4

RESEARCH INSTRUMENT 'ive ;uestionnaires were made accordingly comprising of the various aspects of

marketing. = -he first ;uestionnaire consisted of the general information of the company including !ame% ddress% -elephone num&er% year of esta&lishment% -urnover in 0DD6/DE and uni;ue characteristics of the company. := .= -he second ;uestionnaire had some multiple choice 7 open ended ;uestions% conclusions were drawn on the &asis of these answers. -he third ;uestionnaire consisted of various ;uestions regarding the relationship of the company with the customer. -here were three choices FGesA F!oA and >donAt knowA with each answer and for every FGesA there was 0 mark. In all there were 02 ;uestions.

Scoring Key:02.0H D.5 -he company is strongly focused on the customer% this &odes well for the future. -he companyAs attitude towards its customers is a&out average. -here is a long way to go to achieve e$cellence% &ut the company can achieve it. H.4 -he company doesnAt really care a&out its customers. overhaul of attitude is needed. radical

+=

-he fifth ;uestionnaire was made to determine the pricing strategy of the company for that dichotomous ;uestions were given in the form of Ges 7 !o. -he -otal !o. of yes were counted. -otal !o. of ;uestions were 1H. Scoring key:-otal !o. of Ges 1H 0E.0D 9ess than 0E -he company is *R" ,ood strategist &ut not a >*R"? Reactive pricer.

E=

-he fifth ;uestionnaire was made to know how the company is toning up its marketing muscle. +ichotomous ;uestions were given in the form of FGesA 7 F!oA. In all there were 0H ;uestions. Scoring Key: If the company answered yes to@ / D or 0H@ / It has a strong marketing capa&ility. 5/E@ / it is on the way 'ewer than 5@ / -he company is vulnera&le to marketing minded competitors.

CHAPTER-III

0.1 ANALYSIS AND INTERPRETATION

0.1

ANALYSIS TABLE-1

3.1 ist o! t"e Co#panies $%eneral In!or#ation& Na)# $f T&# C$)6an; 0. 1. 2. 3. 4. 5. 6. E. Super Seals India 9td. Havells India 9td. !ulon India 9td. Indo sian 'use ,ear 9td. :ente$ Electricals 9td. :harat Moulds 7 +ies 9td. MI. Electronics 9td. Belfit 'le$i&les 7 Hydraulics 9td. O5n#"'&(67 /$(n! V#n!u"# -echnical .olla&oration with a :ritish .ompany #oint venture with :ritish .ompany #oint venture with a ustralian .ompany -echnical .olla&oration with a ,erman .ompany "wnership "wnership -echnical .olla&oration with an merican .ompany "wnership Tu"n$8#" (n 199: 03 cores <Hose +ivision= 04H crores 1HH crores E4 crores 5H crores 3H crores 04 crores 0H crores

0..

ACTION PLANNING CHECKLIST FOR MARKETING CONCEPT IN THE COMPANY

Open en'e' (uestions) * Q: 1 What is the co pany!s "efinition of in here& arketing# $f there is no "efinition %rite one

"ut of the eight companies which I surveyed (ust one company has given me the definition of marketing that is Super Seals India 9td. -heir definition of marketing is >customer satisfaction vis/I/vis up gradation of technology? and strict ;uality control whereas the rest of the seven companies are una&le to define FmarketingA. Q: ' Are all anage ent an" staff a%are of %hat arketing is an" %hy it is necessary# $f not i"entify action to be taken# -he management and staff of all the companies are aware to a certain e$tent that what marketing is &ecause they are properly educated a&out the companyAs strategies. Q: ( %hat arkets is the co pany in) in ter s of nee" satisfaction# In terms of need satisfaction these companies are into fle$i&le hose% automo&ile oil% protection and safety of electrical e;uipments% switches% ca&le wires% moulds% dies etc. Q: * %hat seg ents have been i"entifie" in these shoul" be taken to "efine the # -he various segments that have &een identified in these markets are ".E.M. customers% replacement customers% dealers% every person who has his own vehicle arkets# $f unkno%n) %hat action

like car% scooter% (eep <this is for engine treatment oil=% apart from that hotels% hospitals% &usiness houses% pro(ects etc. are also there. Q: + ,an you i"entify for each seg ent# abc"efg.u ber of custo ers actual an" potential Si/e of custo ers What they buy 0or %hat purpose At %hat 1uantities At %hat fre1uency ,o petition

ll the companies can identify each of these factors. Q: 2 3oes friction e4ist %ithin the co pany bet%een various function# $f so) %hat shoul" be "one about it# abc$ prove" co 5"ucation 6rgani/ation unications

ll the companies feel that to avoid friction &etween various departments communications should &e improved.

Q: 7

What pro"uct8 price a"vantages an" "isa"vantages "o you have co pares to your co petitors# Which shoul" you concentrate on in your pro otional effort& -wo companies said that the price advantage which they have is that their policies are customer friendly and products are of international standard. "ne company told me that they have monopoly in the market. "ne company said that they donAt have any productJ price advantage in comparison with the competitors. 'our companies said that they communicate the productJ price advantage in the promotional effort.

Q: 9

What function "es or shoul" the sales force perfor in your total co to an" fro the arket# 0or e4a ple:

unications

abc-

:arket research Prospecting 6r"er taking

'our companies said that their sales force performs all the functions like order taking% prospecting and market research. -wo companies said its prospecting and order taking and rest of the companies said its market research and prospecting. Q: ; 3oes the sales force un"erstan" its responsibilities for these functions# $f not) %hat action shoul" be taken# ll the companies said that their sales force understands its responsi&ilities for prospecting% order taking and market research. "ne company even said that is due to the fact that heir employees are given e$tensive in house training.

Q: 1< =o% far "oes your environ ent li it your gro%th# $f its "oes) %hat action shoul" be taken# ll the seven companies said that their environment doesnAt limit their growth &ut one company said that their environment do limit their growth% since they re;uired different type of imported ru&&ers and chemicals for manufacturing certain products. :ut &ecause of slow government machineries these imports get delayed unnecessarily and due to that they have to spend handsomely for disposition of wastes as these wastes are not &iodegrada&le.

TABLE . 0.0 CUSTOMER RELATIONSHIOP BAROMETER P#" #n!a,# $f C$)6an(#' <u#'!($n' 0. re the needs of customers paramount in your organization L 1. part from sales people% are many mem&ers "f staff involved with customersL 2. +oes the company regularly and formally Measure customerAs needs and satisfactionL 3. +oes the company provide means for .ustomers to make complaints and commentsL 4. +o you communicate fre;uently with customersL 5. re customer complaints handled ;uickly and positivelyL 6. Is there a programme for improving your serviceL E. +oes the organization set out to increase customer loyalty L D. are staff aware of internal customers L 4HK 4HK HK 64K HK 14K 64K 14K HK 0HHK HK HK 0HHK HK HK 0HHK HK HK 0HHK HK HK 4HK 4HK HK Y#' 0HHK N$ D$n=! Kn$5 HK HK

0H.

+oes the company spend time improving its service to internal customers L

4HK

14K

14K

00. 01.

Gour payment policies are customer friendly Gou reward individuals who enhance customer satisfaction and delight.

4HK 64K

14K HK

14K 14K

02.

Gou consider customer complaints as opportunities for innovation 7 improvement.

64K

HK

14K

WAY OF ANALYSIS 0HHK is treated as E marks that means eight companies have answered FGESA to a ;uestion. 64K is treated as 5% which means si$ companies have answered FGESA to a ;uestion% 4HK means four companies and 14K means two companies have answered FGESA to a ;uestion. -here is no score for F!"A or F+"!A- K!"BA answered to a ;uestion. Scoring Key:Marks <according to total no. of FGESA= EH.0H3 Gour company is strongly focused on the customer. -his &odes well for the future. 61.D5 -he companyAs future attitude towards its customers is a&out average. -here is a long way to go to achieve e$cellence% &ut you can achieve it. 61.D6 -he company doesnAt rally care a&out its customers. overhaul of attitude is needed. radical

-his means that each company on an average must have scored like this@ !o. of yes 0H.02 01.D E/H <0H$E M EH% 02$E M 0H3= <01$E M D5% D$E M61= <E$E M 53% H$E M H=

E is multiplied with% 0H% 02% 01% D%E and H since the num&er of companies is E. -he way of scoring is ela&orately e$plained in .hapter/II. -he total score of these companies is eighty. So these companies are strongly focused on the customer.

TABLE 0 0.1 ARE YOU A PRICE STRATEGIST> <u#'!($n' 0. Is your industry growing &ut your market share is remaining constantL 1. Is your companyAs growth rate more than the industryAs growth rateL 2. +o you have complete information on your customerAs needsL 3. 4. +o you have information on your costsL +o you have information on your .ompetitorAs costsL 5. +o you always have the feeling that you are over&iddingL 6. +o your sales people keep complaining of high priceL E. +o you know that your competitors pricing strategies areL D. re you unsure of price leader within HK 0HHK 64K 14K 4HK 4HK HK 0HHK 64K HK 14K 0HHK 0HHK HK 14K 64K P#" #n!a,# $f C$)6an(#' Y#' HK N$ 0HHK

the industryL 0H. Is your pricing strategy and decision aimed at getting lager volumes &ut your other elements of marketing do not support this goalL 00. +oes your profit contri&ution vary across customer groupsL 01. +o you know how your competitors will react to your price movesL 02. +o you communicate your price changes to the customer and trade in a planned mannerL 03. 04. +o you know your customerAs value perception. +oes you price include costs that customer is likely to incur on after sales service% installation% transportation and even pre/sale servicesL 05. Has you top management told you of the range in which you can give discount to get &usinessL 06. re you afraid that if you ;uote high you will lose the orderL 0E. re the prices in real terms declining in your industry &ut yours is notL 14K 64K HK 0HHK 0HHK HK 0HHK 0HHK HK HK 64K 14K 64K 14K 64K 14K 14K 64K

0D.

+o you know how to create price leadership in your industryL

64K

14K

1H.

+o you keep changing prices for each customerL

14K

64K

WAY OF ANALYSIS Same as the last ;uestionnaire since the num&er of ;uestions are 1H% the scoring is like this@/ T$!a? n$. $f Y#' 1H <1H$E M 05H= 0E.0D <0E$E M 033% 0DE M 041= 9ess than 0E <Say 06$E M 025= Here the total no. of FGESA is DH which is far &elow 025 so we can see that these firms are reactive pricer. ,ood strategist &ut not a F*R"A Reactive pricer Y$u a"# F*R"A

TABLE 1 0.@ DETERMINING YOUR MARKETING MUSCLE. <u#'!($n' 0. Has your company carefully segmented the consumers that it servesL 1. +o you routinely measure the profita&ility of your key products or services in each of these consumer marketing segmentsL 2. +o you use market research to keep a&reast of the needs% preferences% and &uying ha&its of consumers in each segmentL 3. Have you identified they key &uying factors in each segment% and do you know how your company compares with its competitors on these factorsL 4. Is the impact of environment trends <demographic% competitive% lifestyle% governmental= on your &usiness carefully gauged. 5. +oes your company prepare and use an annual marketing planL 0HHK HK 14K 64K 64K 14K 64K 14K 4HK 4HK P#" #n!a,# $f C$)6an(#' Y#' 0HHK N$ HK

6.

Is the concept of >marketing investment? understood and practiced in your companyL

0HHK

HK

E.

Is profit responsi&ility for a product line pushed &elow the senior management levelL

4HK

4HK

D. 0H.

+oes your organization FtalkA marketingL +id one of the top five e$ecutives in you company come up though marketingL

64K 0HHK

14K HK

WAY OF ANALYSIS Same as the last ;uestionnaire. Scoring Key:-otal !o. of Ges D or 0H <D$E M 61% 0H$E M EH= 5 or E <5$E M 3E% E$E M 53= 'ewer than 5 you are vulnera&le to marketing minded competitors. Say 4$E So the total score is 5H% which shows that these companies are on the way to tone up the marketing muscle &ut they donAt have a strong marketing capa&ility. Gou are on the way Gou have a strong marketing capa&ility

CHAPTER A IV

1.1. FINDINGS

1.1.

FINDINGS -he findings for the open ended ;uestions are as follows@ /

T&# +#f(n(!($n $f Ma"B#!(n,* #ust one company is a&le to define marketing as >customer satisfaction vis/I/vis upgradation of technology? it proves that the rest of the companies are not very sure a&out the definition of marketing. A5a"#n#'' $f Ma"B#!(n, -hough these companies couldnAt define marketing &ut they claimed that their management and staff aware to a certain e$tent that what marketing is since they are properly educated a&out companyAs strategies which is good wince the staff of each and every company should &e aware a&out marketing% otherwise the company canAt &e successful in the long run. N##+ Sa!('fa !($n* In terms of need satisfaction these companies are into various kinds of products% which shows that they have a &ig market share since they are manufacturing a huge num&er of products for different markets there&y satisfying the customer. I+#n!(f( a!($n $f 8a"($u' '#,)#n!'* -hese companies are identifying some new segments every year% which will help the company to grow in the long run.

A8$(+(n, f"( !($n* ItAs a good that these companies have understood that to avoid friction% communication should &e improved it will help them to avoid friction in future there&y helping them to cooperate with each other. P"$+u !7 P"( # a+8an!a,#* E$cept one company all the companies have some product and price advantage which will help them to go ahead of their competitors. P#"f$")an # $f 'a?#' f$" #* -he sales force of these companies are every effective since they understand their responsi&ilities of prospecting% market research% order taking which will help to strengthen the marketing concept in the company. En8("$n)#n!- ?()(!(n, !&# ,"$5!& $f $)6an;* E$cept one company all the companies claimed that their environment do not limit their growth which canAt &e true since there are some environmental limitation in every company. :ut if in reality its like that then its very good for all these companies% not to have any environmental limitations at all.

FINDINGS OF TABLE- .
ll of the eight companies are aware of needs of customers% they regularly measure the customers needs and satisfaction provide means for customers to make complaints and comments% they communicate fre;uently with customers and handle customer complaints ;uickly and positively. It shows that they are ;uite aware to make the relationship of the customer smooth with the company. s far as customer complaints as opportunities for innovation and improvement% rewarding individuals for enhancing customer satisfaction and delight% programme for improving services are concerned most of them are aware &ut not all of them. 9astly some of the companies only are aware of internal customers and spend time to improve its services to them and them and their policies are customer friendly. -he com&ined no. of FGESA or score which they have got shows that they are strongly focused on customer. It shows that though some of the companies are reluctant to consider some points to improve customer relationship &arometer. Most of them are very much aware that how to improve the relationship of the company with the customer.

FINDINGS OF TABLE A 0 -he marks secured &y all these companies shows that they are reactive pricer since e$cept come ;uestions where more of less all the companies have answered FGESA like complete information on the customerAs needs% their own costs% customerAs value perception% discount to get &usiness and price leadership etc. -hey are not very much aware a&out the rest of the ;uestions and num&er of companies answering yes to all other ;uestion is few. So itAs very much necessary for the companies to study all these points to &e a price leader and a F*R"A strategist.

FINDINGS OF TABLE A 1 -hese companies are ;uite aware of the marketing strategies since their score is 5H which shows that they are on the way of achieving success &ut they need to consider some more points like routinely measuring the profita&ility of the products or services% gauge the impact of environmental tends etc. which will help these companies to have strong marketing capa&ility.

LIMITATION

LIMITATION -here are some limitations in every study. My research also has some limitations. Since I had to depend on the answer of the respondent who were the employees of the organization and draw conclusion on that &asis so its very much possi&le that they may not &e truthful while answering some of the ;uestions &ecause these are the information which people donAt want to give to any&ody. So they may have given me the wrong information they thought that I had gone to their company to collect the information and give it to some other company. Moreover this study was conducted in eight companies only% which is not sufficient &ut since I didnAt have much time to go to many companies which is necessary for a god research. 'urthermore these eight companies manufacture different kinds of industrial products which are not similar in nature like hose pipes% ca&le wir2es% electronic display units% mould% dies% switches etc. -he marketing strategies of these products can differ a lot. So the strategy adopted for a switch may differ a lot from a hose pipe. Since I didnAt have any choice I had to go these industrial companies% which manufacture different kind of industrial product. :ecause finding eight companies which manufacture same kind of product like engine oil% ca&le wires or fle$i&le hoses was not possi&le.

CONCLUSION

CONCLUSION -he relationship of the companies with their clients is ;uite good that we can conclude from the results of the survey since they are strongly focused on the customer. So their focus is e$actly on the needs of the customer satisfaction which has helped these companies to &e successful which will help them in the long run since a company survives only &ecause of customer satisfaction which is of paramount importance of a firm &e it industrial or consumer goods company. s far as pricing is concerned these companies need to change their attitude since they are e$tremely reluctant a&out pricing which is a crucial factor for customers. 9ow cost always attracts a customer this is a universal truth. -wo companies have monopoly in the market so they can afford to &e reluctant a&out pricing &ut the rest of them canAt afford to do so. -hese firms are truly consumer oriented &ut still to an e$tent they need to improve their relations with the customers &y enhancing customer satisfaction and delight% improvement of services etc.

SUGGESTION

1.1

SUGGESTION I would like to suggest that these companies must improve their pricing strategies

immediately. -hese firms should find out whether their pricing strategy and decision is at getting larger volumes or not since the more the volume the more is the profit or at least they will have a sta&le relationship with the customer since to get products at lower price the consumer will stick to these firms rather than going to other firms for &uying products. -hese companies should also find out that why the prices are declining in other companies and why they canAt reduce their price% &ecause to get larger volumes they also have to reduce the prices to attract the customers. -hese companies should also find out that why the prices are declining in other companies and why they canAt reduce their price% &ecause to get larger volumes they also have to reduce the prices to attract the customers. -hese companies should also keep changing prices for customers for loyal customer% discount should &e given. *rofita&ility of the key products should &e routinely measured. Money should &e spend on marketing investment &y increasing the promotional effort through advertising. -hey should evaluate what productJ price advantage and disadvantages they have in comparison with other companies for increasing sales. Moreover all of them should &e a&le to FdefineA marketing since e$cept one all of them have failed to do.

BIBLIOGRAPHY

BIBLIOGRAPHY

a=

Hill and

le$ander <0DDE=%?In+u'!"(a? Ma"B#!(n,CD ll India Seller

-raveller :ook &=

Ra(an Sa$ena <0DD6=%?Ma"B#!(n, Mana,#)#n!? % -ata Mcgraw Hill

c=

Reeder and Reeder <0DD0=%? In+u'!"(a? Ma"B#!(n,?%*rentice Hall of India

d=

Stanley '. Statch 7 Ralph Best 'all <0DDE=%? Ma"B#!(n, R#'#a" &CD ll India -raveller :ook Seller.

ANNEXURE

<UESTIONNAIRE G#n#"a? Inf$")a!($n * 1. .. 0. 1. @. 3. 4. NAME OF THE COMPANY * ADDRESS * * * * *

TELEPHONE NO.

OWNERSHIP7 /OINT VENTURE YEAR OF ESTABLISHMENT TURNOVER IN 1994-9:

UNI<UE CHARACTERISTICS EIF THERE ARE ANYF*

A !($n P?ann(n, C&# B?('! F$" Ma"B#!(n, C$n #6! (n T&# C$)6an;. Cuestions@ 0. 1. 2. 3. 4. Bhat is the companyAs definition of marketingL If there is no definition% write one in here. re all management and staff aware of what marketing is and why it is necessaryL If not identify action to &e takenL Bhat markets is the company in% in terms of need satisfactionL Bhat segments have &een identified in these marketsL If unknown% what action should &e taken to define themL .an you identify for each segmentL a= !um&er of customers actual and potential &= Size of customers c= Bhat they &uy d= 'or what purpose e= In what ;uantities f= t what fre;uency g= .ompetition 5. +oes friction e$ist within the company &etween various functionsL If so% what should &e done a&out itL a= Improved communications &= Education c= "rganisation 6. Bhat productJ price advantage and disadvantages do you have compared to your competitorsL Bhich should you concentrate on in your promotional effortL

E.

Bhat function does or should the sales force perform in your total communications to and form the marketL 'or e$ample @ a= Market research &= *rospecting c= "rder/taking

D. 0H.

+oes the sales force understand its responsi&ilities for these functionsL If not% what action should &e takenL How far does your environment limit your growthL If it does% what action should &e takenL

Cu'!$)#" R#?a!($n'&(6 Ba"$)#!#" *

-ick the most appropriate alternative@ 0. 1. 2. 3. 4. 5. 6. E. D. 0H. 00. 01. 02. re the needs of customers paramount in Gour organizationL part from sales people% are many mem&ers of staff involved with customersL +oes the company regularly and formally measure customerAs needs and satisfactionL +oes the company provide means for customers to make complaints and commentsL +o you communicate fre;uently with customersL re customer complaints handled ;uickly and positivelyL Is there a programme for improving your serviceL +oes the organization set out to increase customer loyaltyL re staff aware of internal customersL +oes the company spend time improving its service to internal customersL "ur payment policies are customer friendlyL Be reward individuals who enhance customer Be consider customer complaints as opportunities for innovation and improvement. Ges Ges Ges Ges Ges Ges Ges Ges Ges Ges Ges Ges Ges !o !o !o !o !o !o !o !o !o !o !o !o !o +onAt +onAt know +onAt know +onAt know +onAt know +onAt know +onAt know +onAt know +onAt know +onAt know +onAt know +onAt know +onAt know

ARE YOU A PRICE STRATEGIST>

,iven &elow are some of the issues that affect price strategy formulation in the company. -ick the most appropriate alternative. 0. 1. 2. 3. 4. 5. 6. E. D. 0H. Is your industry growing &ut your market share is remaining constantL Is your companyAs growth rate more than the industryAs growth rateL +o you have complete information on your customerAs needsL +o you have information on your costsL +o you have information on your competitors competitorAs costsL +o you always have the feeling that you are over&iddingL +o your sales people keep complaining of high *riceL +o you know what your competitors pricing strategies areL re you unsure of price leader within the industryL Is your pricing strategy and decision aimed at getting lager volumes &ut your other elements of marketing do not support this goal. 00. 01. 02. 03. +oes your profit contri&ution vary across customer groupsL +o you know how your competitors will react to your price movesL +o you communicate your price changes to the customer and trade in a planned mannerL +o you know your customerAs value perception Ges !o Ges !o Ges !o Ges !o Ges !o Ges !o Ges !o Ges !o Ges !o Ges Ges !o !o Ges !o Ges !o Ges !o

04.

+oes your price include costs that customer is is likely to incur on after sales service% installation% transportation and even pre/sale serviceL

Ges

!o

05. 06. 0E. 0D. 1H.

Has your top management told you of the range in which you can give discount to get the &usinessL re you afraid that if you ;uote high you will lose the orderL re the prices in real terms declining in your industry &ut yours is notL +o you know how to create price leadership in your industryL +o you keep changing prices for each customerL

Ges Ges Ges Ges Ges

!o !o !o !o !o

DETERMINING YOUR MARKETING MUSCLE.

'ollowing are some of the factors determining the marketing muscle of a company. -ick FyesA if any or all of these you have in your company and FnoA for a&sence of any of these parameters. 0. 1. Has your company carefully segmented the consumers that it servesL +o you routinely measure the profita&ility of your key products or services in each of these consumer marketing segmentsL 2. +o you use market research to keep a&reast of the needs% preferences% and &uying ha&its of consumers in each segmentL 3. Have you identified the key &uying factors in each segment% and do you know how your company compares with its competitors on these factorsL 4. Is the impact of environmental trends <demographic% competitive% lifestyle% governmental= on you &usiness carefully gaugedL 5. 6. E. D. 0H. +oes your company prepare and use an annual marketing planL Is the concept of >marketing investment? understood and practiced in your companyL Is profit responsi&ility for a product line pushed &elow the senior management levelL +oes your organization FtalkA marketingL +id one of the top five e$ecutives in your company come up through marketingL Ges Ges !o !o Ges !o Ges !o Ges !o Ges !o Ges !o Ges !o Ges !o Ges !o

BIBLIOGRAPHY

:I:9I",R *HG 0. Hill and le$ander <0DDE= Industrial Marketing ll India -raveller :ook Seller 1. Ra(an Sa$ena <0DD6= Marketing Management -ata Mcgraw Hill 2. Reeder and Reeder <0DD0= Industrial Marketing *rentice Hall of India 3. Stanley '.Statch 7 Ralph Best 'all <0DDE= Marketing Research ll India -raveller :ookseller